If elasticity of demand for a commodity is less than one, demand is

If the elasticity of demand for a commodity is less than one, it means that the quantity demanded of that commodity is not very sensitive to changes in its price. In other words, a small change in price will result in a proportionally smaller change in quantity demanded. In this scenario, we say that demand is inelastic because changes in price have a relatively small impact on the quantity demanded. This usually occurs for necessities or products with few substitutes, where consumers are willing to pay a higher price because they need the product and cannot easily find alternatives. For example, if the price of insulin increases, diabetic patients will still need to purchase insulin to manage their condition, so they will likely continue buying it even if the price increases. Therefore, the demand for insulin is inelastic.